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Trading Plan for EUR/USD and GBP/USD for September 04, 2017

Technical outlook:

The EUR/USD pair had rallied through 1.1970/75 levels on Friday as expected and reversed sharply lower from there. An hourly chart has been depicted here, with proper labeling and probable wave counts. As seen here, the drop from 1.2070 through 1.1820 levels unfolded into 5 waves labelled 1 through 5 as wave (1). Furthermore, its counter trend rally unfolded into 3 waves A-B-C, which extended through 1.1975 levels (also near fibonacci 0.618 resistance) before reversing lower. Most probably waves (1) and (2) have terminated and wave (3) could be underway towards 1.1600 levels going forward. Besides please note that waves 1 and 2 of a lower degree are also produced which would unfold into 5 waves within wave (3). As an alternate, wave (2) can terminate above 1.1975 levels before turning lower. Interim resistance is seen at 1.1980 levels, while support is at 1.1820 levels respectively.

Trading plan:

Please remain short and also look to sell through 1.1980 again, stop above 1.1270, target 1.1600 and lower.

GBPUSD chart setups:

Technical outlook:

A 4H chart view has been presented here for GBP/USD with clear wave counts labeled again. Please note that the pair had unfolded into 5 waves from 1.3267 through 1.2770 levels, labelled as 1 through 5, which forms wave (1). The pair is seen to be lagging behind its counterparts since the counter trend rally looks to be incomplete, as labelled here A-B-C?. Please note that wave C still looks to be incomplete and should be looking to push towards 1.3050/70 levels at least. Also wave A becomes equal to wave C at 1.3050 levels, hence high probability of wave (2) is terminating there. Please look to again go short at those levels for a drop towards 1.2500 and lower levels. Strong resistance is seen at 1.3267 levels, while immediate support is at 1.2850 levels respectively.

Trading plan:

Please remain short and look to add further around 1.3050 levels again, stop at 1.3270, target 1.2400 and lower.